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This 26 January we celebrate the International Clean Energy DayThe Energy Emissions Trading Scheme, an opportunity to reflect on the road we have travelled and the challenges we face in the energy transition.
- Evolution of the concept of clean energy. The term "clean energy" has evolved significantly since its origin in the 1960s:
- 1960s: Emerges as an alternative to fossil fuels and nuclear fission
- 1970s: Focus on solutions unrelated to traditional fossil fuels
- 21st Century: Gaining prominence in environmental campaigns and energy policies
Today, clean energy is defined primarily by its low environmental impact and absence of greenhouse gas emissions.
- The case of Asturias: An example of energy transition. The transformation of the Asturian energy system illustrates the challenges and opportunities of the transition to clean energy:
- Closure of coal mines and coal-fired power plants
- Partial gasification of the economy
- Renewable energy development (wind, hydro, biomass)
- Challenges in the implementation of solar energy
- Progress and challenges in the energy transition. According to the Just Transition Observatory of Asturias:
- 5.9% of the final energy consumed is renewable
- 22.8% in the electricity sector is renewable
- Renewable energy exceeds 1,500 MW of installed capacity
- Natural gas maintains a crucial role as back-up for the electricity system (866 MW).
- Coal, although present (1,333 MW), has a testimonial role.
- Challenges in industrial decarbonisation. The transition outside the electricity sector is progressing more slowly, especially in industries such as steel. Challenges include:
- Technical complexity of decarbonisation
- Impact on business competitiveness
- Uncertainty in the choice of technologies (hydrogen vs. CO2 capture)
- Fluctuations in investment and issuance
- External factors condition the energy transition. The change in the energy model depends on geopolitical, technological, economic, financial and social factors that condition the speed at which change occurs:
- The arrival of Trump in the United States of America (USA) government introduces legislative uncertainty in the energy sector:
- Fossil sources will see barriers to growth removed in the short term, potentially attracting investors to the sector.
- The possibility of introducing tariffs on trade with China may affect the movement of critical raw materials essential to the manufacture of electronic components and other essential equipment in the renewable industry.
- The possibility that existing public support programmes for the development of renewables may be modified may affect the implementation of investments and the search for new sectors or new territories as target investments.
- Technological limitations in terms of hydrogen, energy storage (stationary and mobile) and guaranteeing continuity of supply will condition the development of investments in renewables.
- Competitiveness has been placed at the heart of European policy, which will be put to the test in the face of the drive and supremacy of China and the USA in the electric car industry, energy generation and the development of energy networks (electricity, natural gas, hydrogen and CO2).
- The concentration of capital conditions the possibilities for industrial development in some sectors, while at the same time creating an unattractive scenario for investments: long payback periods, investment risk due to the influence of third parties (countries and large companies), little financial margin, risk of government intervention due to the presence in a strategic sector.
- Finally, society has become increasingly polarised on renewables, accompanied by a phenomenon of individualism that provokes a generalised movement of rejection of all investment known as BANANA ("build absolutely nothing anywhere near anything or "anyone").
In short, the transition to clean energy is a complex but necessary process. How can we accelerate this change in a fair and efficient way? What role do businesses, governments and society play in this process? Let's share ideas to build a more sustainable energy future through the Just Transition Observatory of Asturias (www.otja.es).
